September U.S. Treasury note futures (ZNU25) present a selling opportunity on more price weakness.

See on the daily bar chart for September U.S. T-Note futures that prices are trending lower and last week hit a four-week low. See at the bottom of the chart that the moving average convergence divergence (MACD) indicator is also in a bearish posture as the red MACD line is below the blue trigger line and both are trending down. Bears have the near-term technical advantage.

Fundamentally, Friday’s Moody’s downgrade to U.S. government debt spooked an already shaky bond market. The global economy is teetering on a trade war and potentially rising inflation. The Federal Reserve presently has its hands tied on lowering interest rates due to rising inflation concerns. It’s very possible that inflationary pressures will start to show up this summer due to product shortages from the reduced global commerce over the past several weeks amid new tariffs. 

A price move in September U.S. T-Notes below chart support at last week’s low of 109.19.0 would give the bears more power and it would also become a selling opportunity. The downside price objective would be 107.00.0 or below. Technical resistance, for which to place a protective buy stop just above, is located at 110.25.0.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.